WITH demand for container shipping hitting a record high in May, EES Shipping is warning that delays in Singapore won’t improve in August and September.
In a posting to its website EES said shipping lines had warned them to expect things to get worse before they got better.
Containers heading from Singapore to Fremantle could expect some containers to be delayed by a month waiting for a vessel to Fremantle.
As the number of containers awaiting transshipment increases, shipping lines are working on a first-in, first-out system.
EES said that in May 15.9 million twenty-foot containers were shipped globally. In comparison, at the height of the covid peak, 15.7 million containers were shipped in May 2021.
Data also revealed that 74 million containers were shipped in the first five months of 2024, surpassing the previous record set during the same period in 2021 by 150,000 containers.
“Analysts are advising that the increase has been largely driven by record-breaking exports from China, as concerns grow over the upcoming implementation of US tariffs on Chinese goods later in 2024. Many exporters and importers have bought their schedules forward to allow for these delays in the supply chain.
“Major trading routes have also been disrupted, with the Houthis continuing to target commercial vessels in the Red Sea.”
EES said bookings from all ports through Singapore will be directly impacted as shipping lines attempt to minimise the disruption and idle times.
Fremantle’s geographic location and the routing of shipping lines meant there is little that can be done to avoid transhipment and EES said the release of bookings will also take longer as they look for the best available options for cargo.
